Standard Product Cost, Direct Materials Variance H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (7,650 pounds) has the following standards: Standard Quantity Standard Price 5,000 lbs. $0.75 per lb. 350 gal. 40 gal. 125 lbs. Whole tomatoes Vinegar 0.90 per gal. Corn syrup 7.50 per gal. Salt 1.80 per lb. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follow 4,900 lbs. of tomatoes 375 gal, of vinegar 36 gal, of corn syrup 140 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. Round the per unit answer to the nearest whole cent. Standard Cost per Batch Ingredient Whole tomatoes Vinegar Corn syrup Salt
Standard Product Cost, Direct Materials Variance H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (7,650 pounds) has the following standards: Standard Quantity Standard Price 5,000 lbs. $0.75 per lb. 350 gal. 40 gal. 125 lbs. Whole tomatoes Vinegar 0.90 per gal. Corn syrup 7.50 per gal. Salt 1.80 per lb. The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follow 4,900 lbs. of tomatoes 375 gal, of vinegar 36 gal, of corn syrup 140 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. Round the per unit answer to the nearest whole cent. Standard Cost per Batch Ingredient Whole tomatoes Vinegar Corn syrup Salt
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Please do not give solution in image format thanku
Transcribed Image Text:a. Determine the standard unit materials cost per pound for a standard batch. Round the per unit answer to the nearest whole cent.
Standard Cost
per Batch
Ingredient
Whole tomatoes
Vinegar
Corn syrup
Salt
Total
Standard unit materials cost per pound
b. Determine the direct materials quantity variance for batch 08-99. If required, round amounts to the nearest cent. Enter a favorable variance as a negative
number using a minus sign and an unfavorable variance as a positive number.
Materials Quantity
Ingredient
Tomatoes
Vinegar
Corn syrup
Salt
Total direct materials quantity variance
Variance
Favorable/Unfavorable
Transcribed Image Text:Standard Product Cost, Direct Materials Variance
H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (7,650 pounds) has the following standards:
Standard Quantity
Standard Price
Whole tomatoes
5,000 lbs.
$0.75 per lb.
Vinegar
350 gal.
0.90 per gal.
Corn syrup
40 gal.
7.50 per gal.
Salt
125 lbs.
1.80 per lb..
The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch 08-99 were as follows:
4,900 lbs. of tomatoes
375 gal. of vinegar
36 gal. of corn syrup
140 lbs. of salt
a. Determine the standard unit materials cost per pound for a standard batch. Round the per unit answer to the nearest whole cent.
Standard Cost
per Batch
Ingredient
Whole tomatoes
Vinegar
Corn syrup
Salt
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education